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Auto Insurance Complaints

Complaint 34 of 36 in "Claim Denied or Delayed"

Insurance Carrier: American Family
State: Nevada

Consumer Complaint:

I have home/auto insurance through American Family.

I was recently in an accident and realize the policy on that vehicle had lapsed. However the policy on our other vehicle and our homeowner’s policy were both paid well ahead.

The insurance company is now telling me that they will not pay for the accident. I think this is unfair, as they had enough money with the other two policies to cover the time that lapsed on the policy that lapsed. How can they do that to me?

I inquired with my agent and he stated that is not how he wrote the policy, but how am I as a consumer supposed to know this? The agent never advised us of this.

The most frustrating thing is that my husband and I have been with this company for 10+ years and have only had one other claim.

Is there anything I can do to force them to pay? Any assistance you could provide would be most appreciated.

Insurance Expert Answer:

I'd write a polite letter to the CEO of the company explaining that you are a long time policyholder and the company misapplied the premium to the homeowner’s policy rather than the auto policy.

It also seems you never received the required notice of pending lapse or you would have told them you'd paid and have the company apply what they regard as an over-payment on the homeowners to the auto policy.